DOHR Wins 2024 NASPE Award for Compensation Modernization

Nashville, TN - On July 16, 2024, the National Association of State Personnel Executives (NASPE), announced that the State of Tennessee's Department of Human Resources (DOHR) compensation modernization program received the 2024 Eugene H. Rooney, Jr. Award for Innovative State Human Resource Management Program. The Eugene H. Rooney, Jr. Awards recognizes innovative state human resources management practices that ensure access and equity while enhancing productivity and service delivery.

Beginning in November 2022, Tennessee State Government transformed its compensation philosophy to successfully compete for high-performing talent. The new approach provides market-competitive wages while maintaining above-market benefits. The changes to the salary structure resulted from a statewide compensation study. Market data determined the competitive salary range for every job in the executive branch. The pay structure was modernized; jobs were benchmarked to market, then placed into the new structure; and employees' pay was adjusted to the new salary grades.

The State's new compensation philosophy is a revolutionary operational and cultural shift in managing employee pay. It was not a one-time, across-the-board pay increase. Instead, the initiative created a sustainable strategy for the ongoing modernization of the State's salary structure and long-term competitiveness in the labor market. Proficiency is now the critical component for wage decisions. Performance to goals is reinforced as the crucial component for annual increases through DOHR's Pay-for-Performance program.

"We're honored to recognize the great work being done across the country to make state government a great place to work," said Leslie Scott, NASPE's Executive Director.

Since implementing the modernized salary structure:

• Turnover reduced by 22 percent, resulting in fewer vacancies.
• Applicant volume increased by 56 percent, indicating improved market competitiveness.
• Unique applicants increased by 62 percent, indicating a broader applicant pool.

"Innovation is the cornerstone of progress, and we are honored to be recognized by NASPE with the 2024 Eugene H. Rooney, Jr. Award for our groundbreaking work in modernizing Tennessee's compensation philosophy," said DOHR Commissioner Juan Williams. "This award is a testament to the dedication and hard work of our teams and partnerships with the Governor's Office, Tennessee General Assembly and the Department of Finance and Administration as we continue our mission for Tennessee State Government to be the best place to work."

Award winners are recognized during the NASPE Annual Meeting held each summer. The annual meeting for 2024 is on July 16 in Chicago, Illinois. Visit the NASPE website for more information on the Annual Awards Program.

About NASPE

NASPE is the authority on leading HR practices and strategies focused on developing an effective State workforce. NASPE provides a national leadership forum representing directors and deputy directors of each state's central human resource management department/agency. The organization was established in 1976 to exchange best practices, strategies, and solutions among state government HR professionals and is the recognized authority on state government human resource management issues.